Tasnee CEO says petchem demand likely to improve

 Fawaz Al-Fawaz, CEO of National Industrialization Co.

The petrochemical sector faces several challenges, the most important of which are the continuation of geopolitical and logistical conditions, high levels of inflation, and interest on financing loans, according to Fawaz Al-Fawaz, CEO of National Industrialization Co.’s (Tasnee).

In a phone interview with Argaam, Al-Fawaz explained that there are positive indicators of improving demand and consequently the average prices of most petrochemical products in the coming periods.

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He also cited a slight improvement in demand for most petrochemical products at the beginning of the year due to the low stock levels with customers and some stops in factories for the purpose of periodic maintenance.

The average propane price during Q1 2024 amounted to $429, while the average selling price of the main products in the petrochemical sector reached between $1,100 and $1,200 per ton during the same quarter, the CEO added.

Commenting on the company's financial performance in the coming period, Al-Fawaz said that demand for most petrochemical products is stable, with the possibility of gradual improvement in global economic growth in the coming period. This will improve demand growth in the main markets, which will reflect positively on future results, he added.

According to the data available in Argaam, Tasnee reported losses of SAR 72.1 million at the end of Q1 2024, versus a profit of SAR 82.1 million during the same period in 2023.